Real Estate Trends
Home prices have risen nationally three times faster than incomes since the turn of the century, which has made home ownership an impossibility for more Americans than ever before.
In many large cities, home prices have outpaced income. In Miami, for example, incomes have risen 16 percent, while home prices have increased 58 percent since early 1998. New York's Long Island suburbs have seen just a 14 percent rise in incomes as compared to an 81 percent increase in home prices. Boston home prices have gone up 89 percent, while incomes have increased only 22 percent.
Even with a downturn in the real estate market in the past year, home sales are still happening and people continue to move into our area..
Luxury properties such as waterfront, golf course, and acreage properties have not seen as big of drops in prices since many of these buyers are paying cash and are not impacted by rising interest rates.
Low interest rates are the only continuing positive trend of the housing market. Low rates average now less than 7 percent for 30-year fixed-rate loans, still much lower than the 50 year average.
Real-estate analysts believe that a severe crash in the housing market is doubtful because inventory continues to be low and demand is still relatively high. Contact me to continue this discussion further.